Just the Facts: The DSA/CBBB Direct Selling Self-Regulatory Council (DS-SRC)

WHO

The Direct Selling Association (DSA) and the Council for Better Business Bureaus (CBBB), the network hub for BBB’s in the U.S., Canada, and Mexico, have created a third party, self-regulatory entity (DS-SRC) for the direct selling industry that will launch in January 2019.

WHEN

Activation Date: January 1, 2019

WHY

While DSA’s current self-regulatory program has been in place for its members for nearly fifty years, it functioned on a largely reactive basis, taking action based on consumer complaints. The creation of the DS-SRC, represents a dramatic step in monitoring and enforcement of high standards for the direct selling industry with a proactive, industry-wide program.

WHAT

The new, third-party, self-regulatory entity (DS-SRC) will monitor the entire U.S. direct selling industry and will embody the following principles:

Clear industry standards on issues such as product and earning representations;

Identification of relevant best practices from other self-regulatory models;

Creation of a process that both monitors and enforces strict business principles; and

Enacts measures to raise the bar of excellence for DSA members and the entire direct selling channel.

The legislation would clearly define a pyramid scheme under state statute and is consistent with the 2004 Council of State Governments (CSG) model legislation supported by DSA. The Senate passage of the bill follows unanimous passage by the Ohio House late last year.

Ohio Governor Kasich has 10 days to take action on the bill. If he takes no action, it becomes law.

Ohio would become the 24th state that defines a pyramid scheme consistent with the CSG language. DSA would like to thank all member company executives who traveled to Columbus in support of this bill.

Help Spread Holiday Cheer and Donate to 25th Annual The TODAY Show Toy Drive

NBC’s The TODAY Show has reached out to DSA to request companies’ interest in being a part of its 25th Annual TODAY Toy Drive.

DSA member companies have participated in helping underprivileged children for the holiday season, which is why producers have contacted DSA in 2018. There is no minimum or maximum donation. Whatever your company is comfortable donating is perfectly acceptable, and very much appreciated.

While the 2018 format will not include on-air donation opportunities during the show hours, producers have informed DSA that this opportunity will be transitioning in the future to a new format. The new format is being determined during the months ahead and 2018 participants will be notified as the program’s new iteration crystallizes.

Since 1994, The TODAY Show Toy Drive has distributed more than $460 million in donations, helping more than 3 million underprivileged children, in as many as 200 organizations in all 50 states and on U.S. military bases abroad, making this one of the largest children’s charities in the United States.

The Today Show Charitable Foundation is an independently funded and operated 501 (c) 3 non-profit charity and all donations are tax deductible to the extent allowed by current IRS regulations.

DSA Fall Conference 2018 assembled more than 300 direct selling leaders in Arlington, VA to share the latest innovations, ideas and insights that can help them gain increasingly competitive ground in today’s shifting market climate.

“Creativity is the response to uncertainty, and DSA Fall Conference 2018 was a look at where direct selling is today, and what we can do to ensure that direct selling’s independent contractors and companies have everything they need to compete in today’s shifting market climate,” explained John Fleming, DSA Hall of Fame and DSEF Circle of Honor recipient.

A General Session CEO Keynote by LifeVantage Corporation President and Chief Executive Office Darren Jensen discussed emerging technology that companies must embrace if they are to become next-generation direct selling enterprises. Together with a General Session Keynote by futurist and best-selling author Mike Walsh, attendees gained strategic insights through workshops focused on marketing, sales, communications, technology, operations, legal and taxation issues to use in fine-tuning their plans for 2019 and beyond.

U.S. Secretary of Labor Alexander Acostapraised the contributions of direct sellers to the fabric of the American economy. He also stated the U.S. Department of Labor helps Americans like direct sellers by ensuring a clear standards and reduction of barriers in regulatory environment to ensure that growth and innovation can flourish.

In addition to providing an overview of the January 2018 FTC Business Guidance Concerning Multi-Level Marketing, Associate Director Greisman characterized the launch of the DS-SRC as a “really terrific step” hailing the program’s framework, transparency and accountability measures. She noted that DSA members are “perfectly situated to get it right and promote consumer protection” and encourage “competition in the marketplace.” Ms. Greisman underscored her belief that self-regulation would benefit all direct selling companies, adding that she looks forward to seeing the program in action.

“Direct selling has the responsibility to raise the bar to protect consumers, and will help the channel maintain the sharpest competitive edge for the independent contractors who have been empowered to build their businesses on their own terms,” DSA President Joseph N. Mariano stated.

“Together we are embarking on a journey that will ensure that direct selling’s reputation reflects the values that we all embrace,” President and Chief Executive Officer of Thirty-One Gifts Cindy Monroe stated. “We as a community value our shared responsibility for living up to the highest ethical standards, and together we fight for our reputation to represent who we are at our core. We are a part of something great, and direct selling’s new self-regulation program will protect consumers, empower distributors and help our brands shine more brightly than ever before.”

On October 19, 2018, Team Beachbody hosted the closing brunch for VIBE PAC (Victory by Investing, Building and Empowering) a federal political action committee led by Rep. Tony Cardenas (D-CA) whose purpose is to promote self-care awareness to Washington, D.C. leadership while getting qualified candidates elected. DSA Vice President of Government Affairs Brian Bennett attended the event.

After opening remarks by Rep. Cardenas, Team Beachbody Chief Legal Officer and Senior Vice President, Business Development, Jonathan Gelfand talked about the company’s goals and purpose as well as legislative challenges to its products and direct selling business. Other Members of Congress in attendance were Rep. Ted Lieu (D-CA) and Hakeem Jeffries (D-NY).

Former Melaleuca General Counsel Ryan Nelson Confirmed to Serve on the U.S. Court of Appeals Ninth Circuit

On October 12, 2018, former Melaleuca General Counsel Ryan Nelson was confirmed by the United States Senate on October 11, 2018 by a vote of 51-44 to serve on the United States Court of Appeals for the Ninth Circuit.

Mr. Nelson was nominated by President Trump in May 2018.

A hearing was held on his nomination before the Senate Judiciary Committee on July 11, 2018 and he was favorably reported out of the Judiciary Committee on September 13, 2018.

On October 10, DSA Vice President of Government Affairs & Policy Brian Bennett led a webinar for the Public Affairs Council's Train the Trainer: Top 10 Do’s and Don’ts for Capitol Hill Meetings.

The Public Affairs Council is the leading international association for public affairs professionals whose mission is to advance the field of public affairs and to provide members with the executive education and expertise needed to succeed.

His presentation focused on how to organize, lead and execute meetings with Members of Congress and their staffs. The webinar was attended by over 100 government affairs professionals from corporations, trade associations and consulting firms across the country. The webinar had overwhelmingly positive reviews.

DSA’s On-the-Go Learning is a collection of videos and podcasts that empowers executives at DSA member companies through quick, convenient and highly-mobile educational tools designed to meet executives “where they are.”

DSA On-the-Go Learning is yet one more way that DSA harnesses the power of association: all direct selling executives at DSA member companies are welcome to learn from those who have blazed trails that are bringing forth tomorrow’s innovations.

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